Strictly speaking, cross-nols are not a strategy, but an original way to display the price graph. Both experienced traders and beginners can use it, just the analysis technique is slightly different from working with the usual Japanese candles.
As for the history of occurrence, cross-nols (dotted-digital graphs) were popular at the beginning of the last century, with the inventor 's name remaining unknown. The fact is that in those days the lack of computers required traders to work with schedules on paper. Candles/bars were very uncomfortable in this regard.
Nowadays, cross-nols are valued for helping to get rid of most of the market noise and giving fairly accurate signals.
For many beginners, the schedule in the form of Japanese candles seems to be some quirk, because in understanding a man far from trade, it should be presented in the form of a line. This is quite logical, but this kind of greatly reduces the time interval that can be displayed on the monitor, infinitely the line will not be compressed, it will simply lose any information value. It was to display more information that Japanese candles were invented. In the context of our topic, they are a transitional stage between the most detailed picture in the form of a line and the most compressed model of the cross of noliki, which, however, has a long history of use and is still quoted, despite a significant leap in the development of information technologies.
At the end of the previous year and the beginning of the last century there were the first references to a new way of displaying information from trades, Charles Dow called the schedule of cross noliki "book." At the time, it was not possible to record all the fluctuations on the junior time frames, and no one wanted to deal with the bars, as they were also painstaking enough in the design. Therefore, such an innovative method has gained popularity, which at first glance seems absolutely incomprehensible. But after all such impression also appears at the first look at candles, and later it is possible to estimate excellent functionality with its own separate kind of analysis of graphic patterns - pork combinations. Noliki crosses are also the subject of separate study.
Such a graph is drawn according to a very simple and simple principle - growth cycles replace fall cycles, at the same time each movement is displayed by a vertical column, nolics are used for reduction, crosses are used for growth. They necessarily alternate, as the main property is to ignore time completely. It didn 't matter how much the price moved - an hour or twenty hours. Here, the key indicator is a measure of motion recoilless, as it is this parameter that is responsible for the start of a new column with the opposite direction. The period must be exactly one column of the corresponding type. Consider such a construction on a specific example - the same graph of the eurodollar in the usual form and the same, but only the graph of the cross of the nolica.
Absolutely familiar for the eyes view of candles, automatically estimated trend by color, consolidation zones, short-term direction. And now consider in an unusual but no less informative form with a strong simplification of the visual component
Both images trace common features, so one can conclude that there are no fundamental changes, and there are features that can be applied usefully. Crosses of nolics very much simplify visual perception, it seems that it is very easy to earn. This is partly true, as subjective perception of time intervals is removed. On the usual chart, a flat annual growth and collapse in a month will be introduced into the stupor, and the crosses of the nolics will show just two columns, of comparable size and a very likely appearance of the third, which due to alternation will again grow.
How do I display as this?
In order to obtain a graph of the cross of the nolics, it is necessary either to download the indicator or to use a terminal in which there is already such a function. As an option, you can look at different information portals online. The indicators work differently and everyone has their own display settings, so you can do everything in a convenient way. Ready-made solutions in terminals also have pleasant visualization, but the most important thing for us is adequate display, without displacements or overlaps on top of the normal graph. Due to the lack of time binding, it will not be possible to use the same method as Heiken Ashi candles, which perfectly overlap the main schedule of Japanese candles or bars.
If it is decided to use the terminal, then it is recommended to select the "Graphs" tab in the "Settings" column and change the number of characters displayed in the window to 35000. The fact is that on weak computers the terminal can not only slow down strongly, but also hang periodically, as such indicators load both the processor and RAM quite strongly. You also need to go to the Tools tab and choose Quote Archive to complete the picture. In the list of presented tools, select the desired tool, mark the М1 time frame, and click Load. After some time, data from the metatraider servers will become available, which will allow to fully use the entire functionality of the indicator of cross nolics.
Advantages of a method
Completely noise clean up. In the parameters, you can specify a value for the number of items to pass to open a new cross or nolik. This makes it possible to remove the kind of huge number of shadows and local extremes, which is characteristic of ordinary pork graphs in periods of consolidation. This can help beginners to some extent, who in each new update of the current maximum by two points see the beginning of a new trend momentum. In this form of consolidation and even complex corrections take a horizontal form, and after the price overcomes the necessary filtration value, a breakdown signal - a new cell - is formed.
Allows you to build current trend lines. When the crosses of nolics are used, the perennial question of how to draw a trend line falls away. Sometimes it is carried through shadows and it works perfectly. In other cases, she is completely ignored by the schedule, but works out the candles spent on the bodies. In the same construction there is no such problem - trending, as well as channels, is built on columns and works without complaints. This is also the effect of the noise filter, but such a method requires patience. You can wait for the signal to appear for a very long time, because there is no timeline. And if on candles or lines there has long been a sample with horizontal displacement, then crosses of noliki will show it only after the beginning of active movement aside from the broken line.
Convenient display of support and resistance levels, trade ranges. Any consolidation is displayed as consecutive direction-changing columns. This is a very graphically convenient option for marking ranges where the price has spent enough time to form the boundaries of consolidation. Accordingly, the exit from such a zone will be confirmed, as the price needs to pass a certain distance at the points due to the mentioned features of the construction of a new cross or nolik. The same is true of support and resistance. It is not necessary to attach to any specific quotation - everything is built itself within the framework of filtering by algorithm. This removes the twofold situations when making trade decisions - either the square is filled or not, deciding whether the price has gone deep enough to start fighting back doesn 't have to.
Ideal for setting goals for medium-term strategies. The rise or fall continues until a new column with the opposite direction appears. There is no need to estimate the type of local correction, all this is skipped and is not shown on the graph of the cross nolics. Thus removes the psychological burden with identification of the truth of the turn. Beginners it will save from constant restarts in the trend and exits from it at the first rollback of 5 points. In general, the method has to calm, measured trade without unnecessary fuss.
As practice shows, it is possible to feel the beauty of using such a method of construction as crosses of nols only in trade on time frames from the clock and higher. In the younger periods the noise effect will be greatly reduced, but filtering can reduce already not very large goals, at the same time putting footsteps just in reverse works - they can increase compared to classical methods of installation at the nearest local extremum. In general, it is much better and more convenient to trade large movements without understanding the subtleties of fluctuations on 20 points on a half-hour chart and even more so it will not be possible to work normally on a minute chart.
The strong simplification of the graph allows to extract simple patterns, which are formed from combinations of columns. They have a very simple look and, unlike classical graphic patterns, do not have hard building criteria. The general shape and number of elements required must be observed, sometimes the ranges require a sequential decrease or, on the contrary, an increase. But in general, the identification is quite simple, the entry points are determined by the break of the key level, that is, the appearance of a new square in the column and will be a signal for purchase or sale. Consider the common models that can often be found on the graphs of the cross noliki.
Double/triple bottom and double/triple top. These patterns usually form near strong levels of support and resistance when price fails to pass the zone with either the first or second and sometimes third attempts. Depending on the scale of the resulting reversal, the columns may be adjacent through one, or may be spaced apart by more than one intermediate. This does not affect the work, most importantly the comparable levels of these lows for the Bottom and highs for the Top. Input is made to break the range formed during pattern formation. The target is usually the reverse signal, that is, the moment when a new column appears and the movement in the reverse direction goes. That is, the position is held as long as possible, but when the trend changes, only profit is fixed without entering the reverse direction.
Break of dynamic resistance. This is specific to this type of pattern graph. It is formed under increasing pressure from the trend side. Consider the example of downhill motion. After the price rests on resistance, it bounces and rests now on the trend. Such oscillations can be quite large, up to 8-10 depending on the scale of this zone. As a rule, in such situations, trade takes place after breaking the resistance line and extremum of the neighboring pillar. Another unconditional plus graph of cross nolics - the signal to fix the price on the other side of the line is due to the formation of a new square, this greatly simplifies the work with patterns for breakthrough. As in the previous case there are no guidelines for model development, we simply expect the appearance of a new column. It may also be an integral part of the known simple pattern of continuing the "Vimpel" trend due to its triangular shape and sense load.
Rectangular turn and diamond. In the first case, the graph forms a rectangle with clear boundaries. After usually very long range trade there is a reversal, the signal to enter the market will be to overcome the boundary of this zone - the standard appearance of a new square of the column, which will exceed the value of the previous ones. It is not found as often as a formation, in shape resembling a pattern "diamond" from the usual kind of graph. It consists of two triangles - the first one turns out to be divergent, the second converging. The number of oscillations inside does not have a special meaning, here shape is important. Both triangles form a diamond, inside which a turn takes place. Such figures usually have a very sharp and dynamic work, so you need to watch the schedule closely, and once the price leaves the diamond, you need to enter the market. The goals as in the previous case are determined by a new turning column.
Let's sum up the result
It can be said that the crosses of the nolics greatly simplify the analysis of the graph, give a schematic representation of the movement to which certain features are characteristic. On them are built their own patterns, which according to accuracy and statistics of working are no less than such from the classical pork graph.